Major Cryptos Hit by Weekend Liquidations as Prices Drop 6%
In a significant downturn, major cryptocurrencies experienced substantial losses this past weekend, with a sharp 6% decline across the market. This fall was marked by heavy liquidations, primarily affecting Bitcoin and Ether.
Weekend Liquidations Overview
In the 24-hour period, approximately $974 million was liquidated from cryptocurrency positions. More than 240,000 traders found themselves forced out of their trades due to the declining prices.
Impact on Major Cryptocurrencies
- Ether (ETH): Suffered the most significant losses, with around $385 million liquidated.
- Bitcoin (BTC): Followed closely, with approximately $188 million in liquidations.
- Solana (SOL) and XRP: Each faced liquidations exceeding $45 million.
The issue extended beyond traditional cryptocurrencies. Tokenized commodities also saw significant activity, with blockchain-based silver contracts incurring large liquidations compared to their market size. This trend highlights how cryptocurrencies are increasingly viewed as quick-response macro trading tools during turbulent market conditions.
Analysis of Liquidation Trends
Data reveals that the selloff primarily affected long positions, with very few short liquidations recorded. This suggests traders had a uniform approach after experiencing range-bound price action for an extended period.
As Bitcoin approached the low $80,000 range and Ether breached critical short-term levels, altcoins experienced accelerated declines. The thinning liquidity over the weekend contributed to this pressure, reflecting a reset in the market rather than a state of panic.
Looking Ahead
The future of cryptocurrency markets hinges on how quickly traders rebuild their leverage. Whether this weekend’s liquidation sets the stage for stabilization or triggers further declines will depend on market sentiment and activity as trading resumes.
